Big Think Strategy
-
Upload
iishahrulll -
Category
Documents
-
view
137 -
download
1
Transcript of Big Think Strategy
(c)Prof. Datuk Dr. John Xavier 1
Big-Think StrategyProf. Datuk Dr. John Antony Xavier
MBAGSM-UPM
2011
(c)Prof. Datuk Dr. John Xavier 2
◦ No class on 27th May◦ Research paper by 3th June◦ Thank you.
Please remember!
(c) Prof. Datuk Dr. John Xavier 3
Economic Clients/Social CustomersPolitical Competitive/Technological Collaborative forces
Resources Present strategyCapabilities PerformanceTechnology Top Management
AssessOrganization’sCurrent and FutureSituation
Set Long-Term
Objectives
Craft Strategies
Implement Strategies
Evaluate Performance
REVISE AND CHANGE AS NEEDED
REVISE AND CHANGE AS NEEDED
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
STRATEGIC PLANNING : THE BIG PICTURE
Develop Vision & Mission
(c) Prof. Datuk Dr. John Xavier 4
STRATEGIC ANALYSIS
STRATEGIC CHOICE
The external environment
Expectations, -mission, vision,
objectives
The internal environment
STRATEGIC IMPLEMENTATION
& EVALUATION
Generation of options
Selection of
strategy
Evaluation of options
Action Plan – Initiatives,
KPI
Systems and Organization
structure
HR and Resource planning
ELEMENTS OF STRATEGIC MANAGEMENT
Review, Follow-
up action
(c) Prof. Datuk Dr. John Xavier
© Prof. Datuk
Dr. Jo
hn Xavier
Strategy-Formulation Framework
Stage 1 - Input Stage◦ EFE matrix◦ IFE matrix◦ Competitor analysis
Stage 2 - Matching Stage◦ SWOT◦ SPACE matrix◦BCG matrix◦Big Think◦ GE/McKinsey matrix◦ Grand strategy matrix◦ IE matrix
Stage 3 - Decision Stage◦ Consolidation, prioritisation and selection (QSPM)
(c)Prof. Datuk Dr. John Xavier 6
Formulated by Bernd. H. Schmitt Thinking out of the box Creating bold ideas and disruptive
strategies that change markets and make companies competitive
Creative and visionary thinking
Big-Think Strategy
(c)Prof. Datuk Dr. John Xavier 7
Big-Think Strategy Model An opportunity to Learn, Explore and
Implement new & creative ways of approaching business challenges, so that it can thrive as a business.
Creative Vehicle- helps to build meaningful connection between company and their business targets.
“Think out of the box”
(c)Prof. Datuk Dr. John Xavier 8
Small Think Big Think
Inertia and resistance Creativity and change
Narrow-mindedness Visionary leadership
Risk aversion Bold ideas and actions
Silo-mentality Integration across core ideas
Short-term focus Lasting impact
Big Think vs. Small Think
Cf. Group think!
(c)Prof. Datuk Dr. John Xavier 9
The Big-Think Strategy Model
1.Ideas Generation
2.Evaluating Ideas
3.Turning Ideas into Strategy
4.Executing Big Think
5.Leading Big Think
6.Sustaining Big Think
(c)Prof. Datuk Dr. John Xavier 10
1. Idea generation through brain-storming2. Ideas classification3. Evaluating ideas4. Refining ideas5. Executing the Big Think strategies6. Monitor implementation
How to Create and Implement Big Think Strategies
(c)Prof. Datuk Dr. John Xavier 11
Think from the standpoint of the customer – (ask, step into his shoes, complaints)
Schmitt’s four generic strategies1. Opposition – creating the opposite of
established strategies – (PC, Ford car) 2. Integration – bringing seemingly incompatible
concepts together (Mass customisation)3. Essence – the essential parts of an entity taken
to the extreme –(Palm oil – cooking fuel)4. Transcendence – going far beyond the
established boundaries of a business or industry (Dell,IBM)
How to think outside the box?
(c)Prof. Datuk Dr. John Xavier 12
1. Innovative benchmarking (internal, competitive, functional [innovative] – Bedi, dabbawalas)
2. Quantum leap – willing to kill the sacred cow (data storage – servers thumbdrives)
3. Stepping out of the time frame or current strategy (scenario planning)
How to think outside the box?
(c)Prof. Datuk Dr. John Xavier 13
Idea generation:1.JAXB Game: BankMonopoly
Objective:◦ What is a bank?◦ How do banks make money?
Terrific tools for enhancing a person's understanding of:
◦ Financial responsibility◦ Smart spending◦ Money management
Learning from JAXBankMonopoly◦ Assign tasks◦ Count◦ Manage◦ Invest money
(c)Prof. Datuk Dr. John Xavier 14
Idea generation:1.JAXB Game: BankMonopoly
JAXB Manager
Customers
Employees
Customer Service Financial
Marketing
(c)Prof. Datuk Dr. John Xavier 15
Idea generation:1.JAXB Game: BankMonopoly
JAXB Headquarte
r
JAXB Branch JAXB Branch
JAXB Branch
16
Idea generation:2.Online ATMs: Cash Delivery Allow customers to received cash within 24
hours by sending the request with few steps in JAXB Clicks.
(c)Prof. Datuk Dr. John Xavier
(c)Prof. Datuk Dr. John Xavier 17
Idea generation:2.Online ATMs: Cash Delivery
Tac Request
(c)Prof. Datuk Dr. John Xavier 18
Idea generation:3.JAXB Drive Through ATMs
JAXBANK
JAX BANK
JAX BANK
JAXBANK
(c)Prof. Datuk Dr. John Xavier 19
Idea generation:3.JAXB Drive Through ATMs Designed for convenient use from the
secure and comfortable environment of an automobile.
Allows quick cash withdrawals for people on the go.
Advantages:◦ Saves time◦ No parking◦ Convenient◦ Fast◦ No waiting
(c)Prof. Datuk Dr. John Xavier 20
Good to have Differentiation Wow type
◦ transcendence or distinctive ideas◦ going against the trend or only one of its kind◦ new discovery or something new
Classifying Ideas
(c)Prof. Datuk Dr. John Xavier 21
Turning ideas into strategy
Transcendence• Online JAXB ATMs• Cash Delivery
Opposition
Essence
Integration• JAXB Drive
Through ATMs
COMPETITIVE REACTION
Weak Strong
CA
PA
BIL
ITIE
S
Exis
ting
New
(c)Prof. Datuk Dr. John Xavier 22
Creativity and change – how bold and visionary? Lasting Impact Sustainability – Do we have the resources,
capabilities, market potential? Suitability Affordability Value creation and profitability Implementability - Integration across functions Competitive advantage – Difficulty of imitation
Evaluation Criteria
(c)Prof. Datuk Dr. John Xavier 23
Ideas Evaluation
CategoriesJAXB Game:
BankMonopoly
Online JAXB
ATMs:
Cash Delivery
JAXB Drive
Through ATMs
Creativity 2 3 3
Business Impact 1 3 3
Communication
Impact
1 2 1
Feasibility 2 1 3
Dependability 2 1 3
Internal Fit 1 2 2
TOTAL 9 12 15
High=3 Middle=2 Low=1
(c)Prof. Datuk Dr. John Xavier 24
R&D Resources Integration across functions Action plan
Executing the Big Think Strategy
25
Executing the big think Develop the R&D and Financial Analysis to
determine strategy implementation costs. Install and improve Security System. JAXB should monitor progress.
(c)Prof. Datuk Dr. John Xavier
(c)Prof. Datuk Dr. John Xavier 26
Review targets achievement periodically Customer surveys/market research Product modification
Monitoring Progress
(c)Prof. Datuk Dr. John Xavier 27
Conclusion Making Big Think sustainable is the hardest
task of all. To succeed, we need the right environment
and organisational structure. (7S) We must have the right people - Big Think
heads who get excited about new ideas with a childlike fervour.